The 5 Game Changing Benefits Of Being A Realtor
In the Bigger Pockets forums this is often a question that comes up quite a bit.
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If I invest should I become licensed as a realtor?
Being both a realtor and investor are not mutually exclusive as some might lead you to believe.
The truth is having your license will give you more options and the ability to convert more of your leads into additional streams of income. Not only that, but being an active agent will allow you to expand a network that will help fill your pipeline with deals.
1. Extra Leads to Work
When your direct mail marketing machine starts turning out leads regularly there might be times where either by choice or necessity you will not be able to work a given lead. Perhaps the property is outside of your target market area, or the property simply does not conform to your needs.
Many of these sellers are not likely to be motivated to sell the property at a discount anyways. Therefore, you can take many of these leads and turn them into listings. A few listings here and there and you can pay for your marketing budget several times over.
2. No Time To Work The Lead? Refer It Out To Your Network
Being a realtor gives you network. Whether your network is small (just colleagues at your brokerage) or larger from years in the business, you can likely find a buyer for the property out there somewhere.
Let another agent work the lead and get paid a referral fee. The goal is to throw away as fee of the leads you generate as possible without monetizing them in some form or fashion.
In addition, being networked with other realtors can sometimes net you deals. The more agents you know, the more that know you and what type of property you are looking for in your business. As a result leads can sometimes fall in your lap.
3. Realtor Commissions
Whether you are looking to sell your recent rehab or purchase a home for yourself being an agent will. For example I know a colleague who will use this reduction to sell his rehabs quicker.
Since he is acting as the listing agent, and saving the commission, he will offer extra incentive at 4% for the buyer's agent.
A 1% increase in commission may not sound like a ton, but over the length of his career he is certain it helps reduce days listed on the market.
Win-win, he saves money and offers a bit more to the buyer's agent and in turn his properties sit on the market for fewer days.
4. MLS Access
As an agent you will gain direct access to the MLS. This will allow you to accurately pick comparables for any properties that you view.In addition, you can do your own searches directly on the MLS without having to depend on another agent to do it correctly.And as many have already found it can be a struggle to find a real estate agent that is familiar with the fundamentals of investing.
5. Long Term Market Knowledge
Being a realtor and having access to the MLS is one thing, but being an active realtor within your market gives you insight to the latest trends and statistics local to your area. This information can prove to be invaluable in your business allowing you to morph and adapt to the current market since real estate is always in a constant state of flux.
Being a licensed agent brings additional options to the table.
There are a few caveats, but for the most part, it is to your advantage to become licensed.
If you have any questions, feel free to leave them below in the comments section and I will do my best to answer them.